70% equity and 30% debt. Should 1031 into similar?

[Seo Hui Han]

i have a commercial property that I'm considering unloading.  Equity position currently 70%.   Would like to 1031 into a multifamily in Orange County.  I've done the math and if I go into a property with a 4% cap keeping the same equity/debt ratio, I think I can cashflow pretty well.

My question is:  is this advisable?  I hear about everyone going 20 or 30 percent down and not being able to cashflow.  I'd like to both appreciate and cashflow, and by going with a huge down payment, I think I can do it, even in Southern California.

BTW, I am a newbie, kind of fell *** backwards into my current situation, and would like to grow my inadvertant good fortune.

[Peter Mckernan]

Quote from @Dave Foster:

@Seo Hui Han, in a high interest/low cap rate environment debt kills commercial deals.  As long as your comfortable with your numbers and the sustainability of your cash flow there's nothing wrong with higher equity to get that cash flow.

Or the other way with 2 smaller properties like @Peter Mckernan said.

That's the beauty of the 1031.  It allows you to be flexible to go not just from type to type.  But also from one to multiple replacements.  Since you can allocate your proceeds any way you want.  Maybe even one cash purchase and one with more debt.  It's all about what the numbers will support.

  The 1031 exchange is the huge tax savings move to get some more doors and build up that wealth with equity movement to larger deals!